Lanitis Golf Public Co Ltd

Quarterly Report • Sep 29, 2022

REPORT AND INTERIM CONDENCED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

REPORT AND INTERIM CONDENCED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

CONTENTS

Board of Directors and other officers	1
Management Report	2-3
Declaration of the members of the Board of Directors and the Company Officials responsible for the preparation of the interim unaudited financial statements of the Company	য
Unaudited statement of profit or loss and other comprehensive income	5
Unaudited statement of financial position	6
Unaudited statement of changes in equity	7
Unaudited statement of cash flows	8
Notes to the condensed unaudited financial statements	9 - 71

PAGE

BOARD OF DIRECTORS AND OTHER OFFICERS

Board of Directors:	Platon E. Lanitis - Chairman Marios E. Lanitis Costas Charitou Demetris Solomonides Kevin Valenzia Mark Gasan Alec Mi77 Mathew Portelli
Company Secretary:	P & D Secretarial Services Limited 10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor, 3041, Limassol, Cyprus
Legal Advisers:	Charalambous, Kountouris & Co LLC
Registered office:	10 Georgiou Gennadiou Street Agathangelos Court, 3rd Floor 3041, Limassol, Cyprus
Bankers:	Bank of Cyprus Public Company Ltd Hellenic Bank Public Company Ltd
Registration number:	HE196800

MANAGEMENT REPORT

The Board of Directors presents its report and condensed unaudited financial statements of the Company for the period from 1 January 2022 to 30 June 2022.

Incorporation

The Company Lantis Golf Public Co Limited was incorporated in Cyprus on 18 April 2007 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public liability company under the Cyprus Companies Law, Cap.113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE").

Principal activities and nature of operations of the Company

The principal activities of the Company, which are unchanged from last year, are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 26 July 2019, the Company has also obtained a building permit for construction of its golf development project. Following a change in the group structure on 15 January 2020, the Company has secured sufficient funds to enable it to commence its development plan. During 2021, the Company begun the construction of the golf project and entered into agreements with buyers for the reservation and sale of plots and apartments. During the year, the Company has also entered into agreements with buyers for the reservation and sale of villas and townhouses.

Review of current position, and performance of the Company's business

The Company is the owner of land of about 1,400 declares near villages of Tserkezoi and Asomatos, in Limassol. The land is located next to the shopping center, My Mall Limassol, the Fasouri Waterpark and the forthcoming development of Casino.

The Company aims to develop a fully integrated golf and real estate development project on its land. One of the main goals of the master plan is to create a contemporary designed, integrated leisure and residential community project that includes luxurious villas, townhouses and apartments, an 18 hole championship golf club, spa and sports center and commercial and retail facilities, such as restaurants and shops.

The loss attributable to the shareholders for the period ended 30 June 2022 is €831,390 (2021: loss of €947,807). During the year, the Company had no recognised income relating to its business activities since the project is under development. The Company recognized contract liabilities of €11,667,414 from the sale of its units as at 30 June 2022. The consultancy fees, financing and other expenses related to the development of the project, are capitalized in the statement of financial position, under Property, Plant and Inventory to the extend that such capitalization is allowed under the Company's accounting policy.

During the period ended 30 June 2022, the Company incurred infrastructure development expenditure amounting to €2,177,358 (2021: €5,243,242), which was financed by the funds received from sales proceeds. As at 30 June 2022, the Company's total assets amounted to €96,190,086 (2021: €94,557,772) and its net assets amounted to €68,461,465 (2021: €69,292,855). The financial position, development and performance of the Company as presented in these financial statements are considered satisfactory.

The Board of Directors does not expect major changes in the principal activities of the Company in the foreseeable future.

Principal risks and uncertainties

The principal risks and uncertainties faced by the Company are disclosed in note 1 of the condensed unaudited financial statements.

Future developments of the Company

During the third quarter of 2022, the Company continues the sale of apartments villas and townhouses. The Company continues the construction of the project's infrastructure which is expected to be completed over the next 2 years.

Use of financial instruments by the Company

The Company is exposed to credit risk and liquidity risk from the financial instruments it holds.

The Company does not have a formal risk management policy programme. Instead the susceptibility of the Company to financial risks such as credit risk and liquidity risk is monitored as part of its daily management of the business.

MANAGEMENT REPORT

Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to meet an obligation. Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost and deposits with banks and financial institutions.

Credit risk is managed on a group basis. For banks and financial institutions, the Company has established policies whereby the majority of bank balances are held with independently rated parties with a minimum rating of 'C'. The utilisation of credit limits is regularly monitored. The company's investments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

Liquidity risk

Management monitors the current liquidity position of the Company based on expected cash flows and expected revenue receipts. On a long-term basis, liquidity risk is defined based on the expected future cash flows at the time of entering into new credit facilities or leased on budgeted forecasts. Management believes that it is successful in managing the Company's liquidity risk.

Dividends

The Board of Directors does not recommend the payment of a dividend.

Share capital

There were no changes in the share capital of the Company during the period under review.

Board of Directors

The members of the Company's Board of Directors as at 30 June 2022 and at the date of this report are presented on page 1. All of them were members of the Board of Directors throughout the period from 1 January 2022 to 30 June 2022.

In accordance with the Company's Articles of Association all Directors presently members of the Board continue in office.

There were no significant changes in the assignment of responsibilities and remuneration of the Board of Directors.

Operating Environment of the Company

Any significant events that relate to the operating environment of the Company are described in note 1 the condensed unaudited financial statements.

Events after the reporting period

There were no material events after the balance sheet date, which have a bearing on the understanding of the financial statements, other than the ongoing Russian/Ukrainian situation described in note 1 to the condensed unaudited financial statements.

By order of the Board of Directors

DECLARATION OF THE MEMBERS OF THE BOARD OF DIRECTORS AND THE COMPANY OFFICIALS RESPONSIBLE FOR THE PREPARATION OF THE INTERIM UNAUDITED FINANCIAL STATEMENTS OF THE COMPANY ON THE UNAUDITED FINANCIAL STATEMENTS

In accordance with the relation and the regulations of the Cyprus Slock Exchange, we lhe members of the members of Lanitis Golf In accordance with the readve regislation one of the drafting of the interim financial statements of Lanitis Golf
Board of Directors and other officers responsible for the dr Board of Directors and other officers responsible for the meeting of the meeting of our knowledge, declare the following:

• The interim unaudited financial statements of the Company have been prepared in accordance with the The meenin binadulted inforcial Statesnents Standards, as adopted by the European Union and the provisions of the Law.
• The interim unaudited financial statements of the Company provide a true and fair view of the assets and liabilities, the financial position and profit and loss of the Company.
• The Interim unaudled financial statements of the Company provide a fair view of the developments and When interim thaddited financial position of the Company, bogether with a description of the main risks and uncertaintles, faced by the Company.

Members of the Board of Directors

Chariman Platon E. Lanitis . Directors Marios E. Lanitis Costas Charitou Demetris Solomonides Kevin Valenzia Mark Gasan Alec Mizzi . Mathew Portelli Responsible for Preparation of Interim Financial Statements Demos Panayiotou - Chief Executive Officer 29 September 2022

UNAUDITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Period from 1 January 2022 to 30 June 2022

	Note	Six months 5	Six months period ended period ended 30/06/2022 30/06/2021 e
Administration expenses		(828,606)	(944,030)
Operating loss		(828,606)	(944,030)
Finance costs	7	(2.784)	(3.777)
Net loss for the period		(831,390)	(947,807)
Other comprehensive loss for the period
Total comprehensive loss for the period		(33) 330 1	(947,807)
Loss per share attributable to equity holders of the parent (cent)	0	(30.10)	(34.37)

The notes on pages 9 to 21 form an integral part of these condensed unaudited financial statements.

UNAUDITED STATEMENT OF FINANCIAL POSITION 30 June 2022

	Note	Six months period ended 30/06/2022 31/12/2021 ್ನಾ	Audited €
ASSENS
Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Deferred income tax assets	10 11 12 20	4,597,434 113,302 1,545 460,465 5.172.746	4,475,812 135,976 2,065 460,465 5,074,318
Current assets Inventories Financial assets at amortised cost Other non-financial assets Cash at bank and in hand	13 14 15 16	83,207,223 177,538 1,124,198 6,508,381 91,017,340	81,163,491 333,907 978,868 7,007,188 89,483,454
Total assets		96,190,086	94,557,772
EQUITY AND LIABILITIES
Equity Share capital Share premium Capital contribution Retained earnings	17 17	4,722,462 25,730,893 2,556,501 35,451,609	4,722,462 25,730,893 2,556,501 36,282,999
Total equity		68,461,465	69,292,855
Non-current liabilities Borrowings Lease liabilities Deferred income tax liabilities	18 19 20	8,246,613 61,443 5,988,947 14,297,003	8,246,613 85,176 5,988,947 14,320,736
Current liabilities Trade and other payables Contract liabilities Borrowings Lease liabilities	21 22 18 19	1,023,766 11,667,414 683,666 56,772	1,271,737 8,931,541 683,666 57,237 13,431,618 10,944,181
Total liabilities			27,728,621 25,264,917
Total equity and liabilities			96.190,086 94,557,772
On 29 September 2022 the Board of Directors of Lanitis Golf Public Co Limited authorised these condensed unaudited financial statements for issue. Platon E. Lanitis Director	Director	Kevin Valenzia

The notes on pages 9 to 21 form an integral part of these condensed unaudited financial statements.

f

UNAUDITED STATEMENT OF CHANGES IN EQUITY Period from 1 January 2022 to 30 June 2022

	Share capital 5	Share premium 0	Capital contributions (3	Retained earnings (3	Irota 5
Balance at 1 January 2021		4,722,462 25,730,893		2,556,501 37,909,921 70,919,777
Comprehensive income Net loss for the period Total comprehensive income for the period					(1.626.922) (1.626.922) (1,626,922) (1,626,922)
Balance at 31 December 2021 / 1 January 2022			4,722,462 25,730,893 2,556,501 36,282,999 69,292,855
Comprehensive income Net loss for the period Total comprehensive income for the period				(831,390) (831,390)	(831,390) (831,390)
Balance at 30 June 2022			4,722,462_25,730,893_2,556,501_35,451,609 68,461,465

Companies, which do not distribute 70% of their profits after tax, as defined by the Special Contribution for the Defence of the Republic Law, within two years after the end of the relevant tax year, will be deemed to have distributed this amount as dividend on the 31 of December of the amount of the deemed dividend distribution is reduced by any actual dividend already distributed by 31 December of the year the profits relate. The Company pays special defence contribution on behalf of the shareholders over the amount of the deemed dividend distribution at a rate of 17% (applicable since 2014) when the entitled shareholders are natural persons tax residents of Cyprus and have their domicile in Cyprus. In addition, the Company pays on behalf of the shareholders General Healthcare System (GHS) contribution at a rate of 2,65%, when the entitled shareholders are natural persons tax residents of Cyprus, regardless of their domicile.

The notes on pages 9 to 21 form an integral part of these condensed unaudited financial statements.

UNAUDITED STATEMENT OF CASH FLOWS Period from 1 January 2022 to 30 June 2022

	Note	Six months period ended period ended (2	Six months 30/06/2022 30/06/2021 €
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before tax		(831,390)	(947,807)
Adjustments for:
Depreciation of property, plant and equipment	10	11,070	11,861
Depreciation of right-of-use assets	11	27,829	13,902
Amortisation of intangible assets	12	5210	520
Interest expense - Lease Liabilities	7	2,627	3,720
Interest expense - Bank borrowings	7	157
		(789,187)	(917,804)
Changes in working capital:
Increase in inventories		(2,043,732)	(2,729,427)
Decrease/(increase) in financial assets at amortised cost		156,369	(16,115)
(Increase)/decrease in other non-financial assets		(17,080)	116,852
Increase in deferred expenses		(128,250)	(145,850)
(Decrease)/increase in trade and other payables		(247-978)	790,415
Increase in contract liabilities		2,735,873	5,113,386
Cash (used in)/generated from operations		(ECS,980)	2,211,457
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for purchase of property, plant and equipment	10	(134,812)	(174,659)
Payment for purchase of right-of-use assets	11	(31 011)
Principal elements of lease payments	19	(24,198)	(25,201)
Proceed from disposal of right-of-use assets	11	25,856
Proceeds from disposal of property, plant and equipment	10	2,120
Net cash used in investing activities		(162,045)	(199,860)
CASH FLOWS FROM FINANCING ACTIVITIES Interest paid		(2,782)
Net cash used in financing activities		(2,782)
Net (decrease)/increase in cash and cash equivalents		(498,807)	2,011,597
Cash and cash equivalents at beginning of the period		7,007,188	5,656,925
Cash and cash equivalents at end of the period	16	6,508,381	7,668,522

The notes on pages 9 to 21 form an integral part of these condensed unaudited financial statements.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

1. Incorporation and principal activities

Country of incorporation

The Company Lanitis Golf Public Co Limited (the "Company") was incorporated in Cyprus on 18 April 2007 as a private limited liability company under the provisions of the Cyprus Companies Law, Cap. 113. On 28 February 2014, the Company was converted from a private limited liability company to a public limited liability company under the Cyprus Companies Law, Cap. 113 and is listed on the Emerging Companies Market of the Cyprus Stock Exchange ("CSE"). Its registered office is at 10 Georgiou Gennadiou Street, Agathangelos Court, 3rd Floor, 3041, Limassol, Cyprus.

Unaudited financial statements

The condensed unaudited financial statements for the six months ended on 30 June 2021 and 2022 respectively, have not been audited by the external auditors of the Company.

Principal activities

The principal activities of the Company, which are unchanged from last year, are the development of a special leisure and residential golf course project. The application of the town planning permit with terms and conditions, was approved on 14 November 2012. On 26 July 2019, the Company has also obtained a building permit for construction of its golf development project. Following a change in the group structure on 15 January 2020, the Company has secured sufficient funds to enable it to commence its development plan. During 2021, the Company begun the construction of the golf project and entered into agreements with buyers for the reservation and sale of plots and apartments. During the year, the Company has also entered into agreements with buyers for the reservation and sale of villas and townhouses.

Operating Environment of the Company

The year 2021 was marked by the continuous effects of the COVID-19 pandemic, the emergence of new variants and the associated measures implements globally with a view to delay the spread of the disease, safeguard public health and ensure the economic survival of working people, businesses, vulnerable groups and the economy at large.

To this end, the government of the Republic of Cyprus extended certain of the measures in place since 2020 and, in some cases, introduced new, economically costly, measures with the aim of protecting the population from further spread of the disease.

Some entry regulations continued to apply within 2022, which imposed limitations in the entry of individuals to the Republic of Cyprus. A considerable number of private businesses operating in various sectors of the economy closed for a period of time while a number of lockdown measures, such as prohibition of unnecessary movements and suspension of operations of non-essential businesses, including retail companies (subject to certain exemptions), were applied throughout the year. The measures were continuously revised (lifted or tightened) by the Republic of Cyprus during the year taking into consideration the epidemic status in the country.

Industries such as tourism, hospitality and entertainment have been directly and significantly disrupted by these measures. Other industries, such as manufacturing and financial services, have also been indirectly affected.

These measures have further restricted the economic activity both in Cyprus and globally and have severely impacted and could continue to negatively impact, businesses, market participants as well as the Cyprus and global economies as they persist for an unknown period of time.As a result of the measures imposed by the government, the Company did not face any major implications. The COVID-19 pandemic and of the above measures on the Cyprus economy, and consequently on the future financial performance, cash flows and financial position of the Company, are difficult to predict and management's current expectations and estimates could differ from actual results. The Company's management believes that it is taking all the necessary measures to to ensure minimum disruption to and sustainability of the Company's future plans in relation to the construction and development of the residential golf course project.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

During 2021, the Russian economy continued to be negatively impacted by the ongoing political tension in the region and international sanctions against certain Russian companies and individuals, with the tension intensifying towards the end of 2021 as a result of further developments of the situation with Ukraine. From late February 2022 the conflict between Russia and Ukraine escalated further and the situation remains highly unstable. In response to the conflict, a number of sanctions have been imposed on Russian entities to restrict them from having access to foreign financial markets, including removing access of several Russian banks to the international SWIFT system. The EU, UK and US (amongst others) have also imposed sanctions against the Russian central bank, restricting the access of the Russian state to foreign currency reserves, and introduced further asset freezes against designated individuals/entibes and sectoral sanctions. These measures could negatively impact the construction industry of Cyprus as it depends significantly on the Russian market. A significant portion of the Company's sales have been made to Russians so this situation might affect future sales.

The situation is still evolving and fimitations on business activity of companies operating in the region, as well as consequences on the Russian economy in general, may arise but the full nature and possible effects of these are unknown. It is not possible for management to predict with any degree of certainty the impact of this uncertainty on the future operations of the Company and estimate the financial effect on the Company. Whilst these uncertainties may impact the future income there is no material that may cast significant doubt on the Company's ability to continue as a going concern. Management's plans include diversifying the customer portfolio in which they intend to attract for the sale of properties. This will avoid significant reliance in buyers from Russia Federation for which there could be uncertainty in the ability to receive the funds following the implementation of sanctions and restrictions on SWIFT systems. Management is closely monitoring the situation and is ready to act depending on the developments.

2. Basis of preparation

The condensed unaudited financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union (EU) and the requirements of the Cyprus Companies Law, Cap. 113. The condensed unaudited financial statements have been prepared under the historical cost convention.

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and requires Management to exercise its judgment in the process of applying the Company's accounting policies. It also requires the use of assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on Management's best knowledge of current events and actions, actual results may ultimately differ from those estimates.

Significant accounting policies

The accounting policies adopted for the preparation of the condensed statements for the six months period ended 30 June 2022 are consistent with those followed for the preparation of the annual audited financial statements for the year ended 31 December 2021. The 2022 interim financial statements do not include all information and disclosures compared to the 2021 annual financial statements and should be read in coniunction with the audited financial statements for the year ended 31 December 2021.

3. Adoption of new or revised standards and interpretations

During the current period the Company adopted all the new and revised International Financial Reporting Standards (IFRS) that are relevant to its operations and are effective for accounting periods beginning on 1 January 2022. This adoption did not have a material effect on the accounting policies of the Company.

4. New accounting pronouncements

At the date of approval of these condensed unaudited financial statements, standards and interpretations were issued by the International Accounting Standards Board which were not yet effective. Some of them were adopted by the European Union and others not yet. The Board of Directors expects that the adoption of these accounting standards in future periods will not have a material effect on the condensed unaudited financial statements of the Company.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

5. Expenses by nature

	Six months	Six months period ended period ended 30/06/2022 30/06/2021
	(3	ਵ
Staff costs (Note 6)	322,113	320,761
Depreciation and amortisation expense	39,420	26,283
Auditors' remuneration - current period	10,120	22,109
Auditors' remuneration - prior years	1,247
Marketing & Promotion expenses	169,938	209,213
Legal and professional	22,401	138,654
Motor vehicle running costs	9,608	7,235
Commitment fees	153,000	178,200
Other expenses	100 759	41,575
Total expenses	828.606	944.030

6. Staff costs

	Six months	Six months
		period ended period ended
		30/06/2022 30/06/2021
	(3	e
Salaries	274,483	277,703
Social security costs	25,290	23.558
GHS contribution	6,728	7,405
Social cohesion fund	4.640	5,107
Provident fund	10 377	6,988
	CP 77 41 13	320.761

The Company participates in an external provident fund scheme run by an independent party, which is funded separately and prepares its own financial statements whereby employees are entitled to payment of certain benefits upon retirement or prior termination of service.

7. Finance costs

	5	Six months Six months period ended period ended 30/06/2022 30/06/2021 €
Net foreign exchange losses	P	57
Interest expense on lease liabilities	2.627	3.720
Other interest expense	155
Finance costs	2,784	2 777

8. Tax

The Company is subject to corporation tax on taxable profits at the rate of 12,5%.

Under certain conditions interest income may be subject to defence contribution at the rate of 30%. In such cases this interest will be exempt from corporation tax. In certain cases, dividends received from abroad may be subject to defence contribution at the rate of 17%.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

8. Tax (continued)

Due to tax losses sustained in the period, no tax llability arises on the Company. Under current legislation, tax losses may be carried forward and be set off against taxable income of the five succeeding years.

9. Loss per share attributable to equity holders of the parent

	Six months period ended period ended 30/06/2022 30/06/2021	Six months
Loss attributable to shareholders (€)	(831,390)	(947.807)
Weighted average number of ordinary shares in issue during the period	2.761.674	2.761.674
Loss per share attributable to equity holders of the parent (cent)	CO = (0)	(34 37)

10. Property, plant and equipment

		Prefab Land and Golf house Development	Plant and machinery	Motor vehicles	Furniture, fixtures and other equipment	Total
	(3	6	6	6	(S	(3
Cost Balance at 1 January 2021 Additions Interest capitalised during the	8,800	4,123,327 257,055	5,276 713	3,500	19,968 65,687	4,148,571 335,755
year		20,411				20,411
Balance at 31 December 2021 / 1 January 2022	8,800	4,400,793	5,989	3,500	85,655	4,504,737
Additions		133,626			1,186	134,812
Disposals					(2,650)	(2,650)
Balance at 30 June 2022	8.300	4,534,419	5,989	3,500	84,191	4,636,899
Depreciation Balance at 1 January 2021 Charge for the period	880		3,694 ਦੇਰੇਰੇ	700	3,100 19,952	6,794 22.131
Balance at 31 December 2021 / 1 January 2022	330		4,293	700	23,052	28,925
Charge for the period On disposals	440		300	350	9,980 (530)	11,070 (530)
Balance at 30 June 2022	1,320		4.593	1,050	32,502	39.465
Net book amount
Balance at 30 June 2022	742 830)	45622519	1.396	2,450		STATE THE SEART
Balance at 1 January 2022	7.9720	4,400,700	1.696	2,800		62,603_4,475,812

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

10. Property, plant and equipment (continued)

In the statement of cash flows, proceeds from sale of property, plant and equipment comprise:

		Six months Six months
	period ended period ended
		30/06/2022 30/06/2021
Net book amount	72 9 220
Proceeds from disposal of property, plant and equipment	2-17-0

11. Right-of-use assets

	Buildings	Motor vehicles	Tota
	€	€	(3
Cost Balance at 1 January 2021 Additions	89,523 22,436	37,269 66,049	126,792 88,485
Balance at 31 December 2021	1811-1513	103 318	211-1277
Balance at 1 January 2022	111,959	103,318	215,277
Additions Disposals		31,011 (31,027)	31,011 (31,027)
Balance at 30 June 2022	111,959	103,302	215,261
Depreciation Balance at 1 January 2021 Charge for the period	22,436 27,805	7,454 21,606	29,890 49.411
Balance at 31 December 2021	50,24 Fl	20.060	749 36 F
Balance at 1 January 2022 Charge for the period Disposals	50,241 13,902	29,060 13,927 (5,171)	79,301 27,829 (5,171)
Balance at 30 June 2022	64,143	37,816	101,959
Net book amount
Balance at 30 June 2022	47,816	65.486	111:302
Balance at 1 January 2022	61,718	74.258	135,976
Amounts recognised in profit and loss:
		Six months period ended period ended	Six months 30/06/2022 30/06/2021

Interest expense on lease liabilities

ਵ

(2,627) ___ (3,720)

e

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

12. Intangible assets

	Computer software (S)
Cost
Balance at 1 January 2021	3,303
Additions	3,098
Balance at 31 December 2021	6,401
Balance at 1 January 2022	6,401
Balance at 30 June 2022	6,401
Amortisation
Balance at 1 January 2021 Charge for the period	3,303 1.033
Balance at 31 December 2021	4.336
Balance at 1 January 2022
Charge for the period	4,336 520
Balance at 30 June 2022	4,856
Net book amount
Balance at 30 June 2022	1,545
Balance at 1 January 2022	2,065

13. Inventories

	Six months
	period ended	Audited
	30/06/2022 31/12/2021
	2
Property under development	83,207,223 81,163,491
		83.207.223 81.163.491

Analysis of cost of property under development:

	Six months period ended 30/06/2022 31/12/2021	Audited
Balance brought forward Interest capitalised during the year Development costs capitalised during the year	(금 81,163,491 2.04 5.7 67	75,786,364 390.940 4,986,187
llotal		83,207,223 81,163,491

Capitalised costs of €2,043,732 (2021: €4,986,187) includes costs which were incurred in relation to the construction and development of residential premises.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

13. Inventories (continued)

All inventories items are stated at cost with the exception of inventory that was transferred on 15 January 2020 from investment property which is presented at its fair value at the date of transfer.

14. Financial assets at amortised cost

	Six months
	period ended	Audited
	30/06/2022 31/12/2021
	(S
Receivables from parent (Note 23.2)	155,809	150,129
Other receivables	21.729	183.778
	177-588	333 907

The fair values of financial assets at amortised cost due within one year approximate to their carrying amounts as presented above.

15. Other non-financial assets

	Six months period ended 30/06/2022 31/12/2021	Audited
	€
Prepayments	74,944	57.864
Deferred expenses	1.049.254	921.004
	1.174.198	978.868

Deferred expenses relate to the contract liabilities of €11,667,414 (Note 22) which represents advances from clients for the sale of units within the resort.

16. Cash at bank and in hand

	Six months
	period ended	Audited
	30/06/2022 31/12/2021
Cash at bank and in hand	6,508,381	7.007.188
	6,508,381	7.007.188

For the purposes of the statement of cash flows, the cash and cash equivalents include the following:

	Six months
	period ended	Audited
		30/06/2022 31/12/2021
	3
Cash at bank and in hand	6,508,381	7,007,188
Bank overdrafts and short term loans (Note 18)	(683,666)	(683.666)
	5822.745	6.323.522

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

16. Cash at bank and in hand (continued)

Non-cash transactions

The principal non-cash transactions during the current and prior year were the acquisition of right-of-use assets using leases.

Cash and cash equivalents by currency:

	Six months period ended	Audited
	30/06/2022 31/12/2021
	(3
Euro - functional and presentation currency	6,508,331	7.007,188
	6,508,381	7.007.188

17. Share capital and share premium

	2022 Number of	2007	2004 Number of	20221
Authorised	shares	ਰ	shares	e
Ordinary shares of €1.71 each	3.000 000	59 COLODO	3.000.000	5.130.000
Issued and fully paid	Number of shares	Share capital (1)	Share premium (5	Trota (1)
Balance at 1 January 2021	2,761,674	4,722,462	25,730,893	30,453,355
Balance at 31 December 2021	2.7 61 .674		4.722.462 25.730.893 30.453,355
Balance at 1 January 2022	2.761.674	4.772462	25,730,893	30.45 355
Balance at 30 June 2022	2,7761 4674	4,722,462	2-7 4 0 0 3 9 3	30,453,357

The total authorized number of ordinary shares is 3,000,000 shares (2021: 3,000,000 shares) with a par value of €1.71 per share. All issued shares are fully paid.

18. Borrowings

	Six months period ended 30/06/2022 31/12/2021 (3	Audited e
Current borrowings
Borrowings from related parties (Note 23.4)	683.666	683,666
	683.666	683.666
Non-current borrowings
Borrowings from related parties (Note 23.4)	8.246.613	8,246,613
	8.246.613	8,246,613
lotal	8.930.779	8.930.279

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

18. Borrowings (continued)

Maturity of non-current borrowings:

	Six months period ended 30/06/2022 31/12/2021	Audited
Between two and five years	(3	8.246.613 8.246.613

The borrowings from related parties are repayable by 31 December 2025.

On 24 September 2020, the Company has signed an agreement with Hellenic Bank for a €34m loan term facility related to the construction of the infrastructure of the resort and €3.15m ancillary facilities in the form of bank guarantees and overdraft facility. The loan term facility will be available to the Company for utilisation once the Company has reached €30m of confirmed sales.

The fair value of non-current borrowings between 1-2 years, equals their carrying amounts, as the impact of discounting is not significant.

As part of the share purchase agreement concluded on 15 January received an interest free loan from a related party amounting €10,000,000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the fair value gain recognised at initial recognition of €2,556,501, was credited in the statement of changes in equity as Capital Contribution. The unwinding of interest expense following the initial recognition, is capitalised against inventories and property, plant and equipment as apportioned by the building coefficient of the project.

The weighted average effective interest rates at the reporting date were as follows:

Six months
period ended	Audited
30/06/2022 31/12/2021
0/0	0/0
5

The Company borrowings are denominated in the following currencies:

	Six months period ended 30/06/2022 31/12/2021	Audited
Euro - functional and presentation currency	(3
	8,930,279 8.930.279	8.930.279 _8.930.279

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

19. Lease liabilities

This note provides information for leases where the Company is a lessee.

(i) The Company's leasing arrangements

The Company leases buildings and motor vehicles. Rental contracts are typically made for fixed periods of 1 year to 4 years, but may have extension options.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

Six months period ended 30/06/2022 31/12/2021 (1	Audited ਵ
Right-of-use assets
Motor vehicle 65,486	74,258
Buildings 477816	61,718
1113 3302	135.976
Lease Liabilities
Non-current 61,443	85,176
Current 56.772	57.237
118 315	142,413

20. Deferred tax

The movement on the deferred taxation account is as follows:

Deferred tax liability

	Fair value gains on investment property ਦ
Balance at 1 January 2021	5.988.947
Balance at 31 December 2021	5,988,947
Balance at 1 January 2022	5,988.947
Balance at 30 June 2022	5,988,947

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

20. Deferred tax (continued)

Deferred tax assets

	Tax losses (3
Balance at 1 January 2021 Charged/(credited) to:	231,494
Charged to Profit or Loss	228,971
Balance at 31 December 2021	460,465
Balance at 1 January 2022	460,465
Balance at 30 June 2022	460.465

Deferred income tax assets are recognised for the tax losses carried forward to the realisation of the related tax benefit through future taxable profits is probable.

As at 31 December 2021, the Company had tax losses carried forward amounting to €3,683,723 for which a deferred tax asset was recognised. From these losses an amount of €310,148 expires in 2023, €261,328 expires in 2024, €1,280,478 expires in 2025 and €1,831,769 expires in 2026.

21. Trade and other payables

	Six months period ended	Audited 30/06/2022 31/12/2021
	(3
Social insurance and other taxes	189150	271,293
VAT	260.196	177,845
Accruals	47/11ch2	24,006
Other creditors	691 530	578,752
Payables to related parties (Note 23.3)	6-7-3	219,841
	1.0737/66	1.271.737

The fair values of trade and other payables due within one year approximate to their carrying amounts as presented above.

22. Contract liabilities

	Six months period ended	Audited
	30/06/2022 31/12/2021
Client advances	(3 11.667.414	8.931.541
	11.667.414	8,931,541

Client advances represent advances from clients for the sale of plots, apartments, townhouses and villas.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

23. Related party balances and transactions

Up to 15 January 2020, the Company was controlled by Lanitis Farm Limited, incorporated in Cyprus, which owned 99,99% of the Company's shares. The ultimate shareholder of the company was Lanitis E.C. Holdings Limited.

On 15 January 2020, MCY Development Limited has purchased all the shares of the Company owned by Lanitis Farm Limited. As a result MCY Development Limited now owns the 99.99% of the issued share capital of the Company. The share capital of MCY Development Limited is equally owned by Lanitis Farm Limited and AMOL Enterprises Limited.

The related party balances and transactions are as follows:

23.1 Related party transactions

		SIX months 51x montas
		30/06/2022 30/06/2021
Nature of transactions	(3
Rent expense	15,922	12,174
Management fees	9.000	12,000
Marketing and promotion	134,288	145,992
Construction costs	1,730,733	410,075
IT support fees	2.344	1.137
	1330 1137	581.378
		period ended period ended

23.2 Receivables from related parties

		period ended	Audited
			30/06/2022 31/12/2021
Name	Relationship	0
MCY Development Limited	Parent Company	155,809	150,129
Amol Enterprises Limited	Related Party	705
		156 514	150 170

Six months

The above balances bear no interest and are repayable on demand.

23.3 Payables to related parties (Note 21)

	Six months
	period ended	Audited
		30/06/2022 31/12/2021
Name	(1)
Amol Enterprises Limited		6,454
Lanitis Farm Limited	533	1,383
Cybarco Development Limited		202,367
Lanitis E.C. Holdings Limited	5,355	7,140
Cybarco Contracting Limited	:315	2.497
	6.758	219.841

The above balances bear no interest and are repayable on demand.

NOTES TO THE CONDENSED UNAUDITED FINANCIAL STATEMENTS Period from 1 January 2022 to 30 June 2022

23. Related party balances and transactions (continued)

23.4 Borrowing from related parties (Note 18)

	Six months
	period ended	Audited
	30/06/2022 31/12/2021
	n
At beginning of year	8,930,279	8,518,927
Unwinding of interest expense		411.352
	8 9 30 779	8.930.279

( 1 ) As per the shareholder purchase agreement concluded on 15 January 2020, the loan balance outstanding as of that effective date from Lanitis Farm Limited, being €2,971,658 was capitalised instead of cash settled.

( 2 ) As part of the share purchase agreement concluded on 15 January 2020, the Company received an interest free loan from a related party amounting €10,000,000 which is repayable during 2025. The interest free loan was fair valued at initial recognition using the market interest rate (5%) for bank borrowings available to the Company. The fair value gain recognised at initial recognition of €2,556,501, was credited in the statement of changes in equity as Capital Contribution.

24. Significant agreements with management

At the end of the year, no significant agreements existed between the Company and its Management.

25. Contingent liabilities

The Company had no contingent liabilities as at 30 June 2022.

26. Commitments

An amount of €5 million is payable to the Town Planning and housing Department of the Ministry of interior in the period of 10 years for the permit to develop the gold resort project for the Company.

In accordance with the resolution taken by the Ministry Cabinet of Cyprus on 22 June 2016, the Company needs to pay annual instalments of €0.5 million each, until full repayment of the above noted e5 million.

The Company has already settled the liabilities for the years 2013 to 2021.

An amount of €961,920 is payable to the Electricity Authority of Cyprus upon the completion of the relevant installation and connection of the electricity supply.

An amount of €820.000 is payable to the Water Development for as contribution for the construction of a water pipeline for the provision of potable water to the area of the project.

27. Events after the reporting period

There were no material events after the balance sheet date, which have a bearing on the understanding of the financial statements, other than the ongoing Russian/Ukrainian situation described in Note 1.